You need to know a few things about the U.S. Export-Import Bank, said Jim Foley, director of the international trade center at Bradley University.

“First, it’s not really a bank, and it doesn’t really deal with imports,” he said.

It is a federal agency that helps U.S. companies send exports overseas, said Foley.

It’s also become something of a political football. The agency has been criticized for aiding corporate welfare by incoming House Majority Leader Kevin McCarthy, R-Calif., on record as opposing reauthorization of the Export-Import Bank, something Congress must do by September.

Caterpillar Inc., a company that thrives on exports, is not only a vocal supporter of the Ex-Im Bank, it’s pooled its resources to lobby the agency in the past.

Last year, Caterpillar worked hard to support Roy Hill’s loan request for his Australian iron ore mine before the Export-Import Bank, said Caterpillar spokeswoman Molly Donahue from the company’s Washington, D.C., office.

“Strategic collaboration from multiple business units — including global mining, financial products, global government and corporate affairs, Caterpillar logistics and legal services — supplemented with more than 23,000 letters of support from Caterpillar employees made a difference,” she said, referring to the Ex-Im Bank’s approval of long-term financing for the mining project last November.

Caterpillar sees the Ex-Im Bank as playing a vital role in assisting U.S. trade to foreign buyers, she said.

“For the United States to close the Ex-Im Bank in this environment is surrendering export markets and economic growth in the United States,” said Donahue.

Foley thinks misinformation over what the agency does has confused the issue.

“While it’s true that the Ex-Im Bank helps large companies like Caterpillar and Boeing, 90 percent of the agency’s transactions are with small U.S. businesses,” he said.

“The way the Ex-Im Bank works is that it assumes credit risks that the private sector is unable or unwilling to accept,” said Foley.

“Criticism has been raised that the federal government is playing a role that the private sector could handle. The truth is that there isn’t anyone else to do it,” he said.

Foley also took on other misconceptions regarding the Ex-Im Bank. “As far as costing the taxpayers money, the Ex-Im Bank returned $1 billion to the U.S. treasury last year,” he said.

“A company like Caterpillar pays a fee for the Ex-Im Bank’s service which serves as an insurance policy for transactions with foreign countries,” he said.

If the United States suspended operations of the Ex-Im Bank, it could be the only developed country in the world without such an agency, said Foley. “We’d be competing with our hands tied behind our backs.”

Central Illinois congressional representatives both agree on the agency’s importance. U.S. Rep. Cheri Bustos, D-East Moline, supports a seven-year reauthorization of the Ex-Im Bank (the present term is two years).

“The Export-Import Bank helps support and create jobs at a range of local companies, including Caterpillar. I am hopeful that Congress can put political games aside and work together to ensure the Bank and our region’s economy remain strong into the future,” she said.

While some Republican members of the House question reauthorizing the Ex-Im Bank, U.S. Rep. Aaron Schock, R-Peoria, has pledged support. “For us to kill the Ex-Im Bank is paramount to unilateral disarmament in a trading war,” he said in a recent interview with a Chicago TV station.

The Senate may take the lead on the Ex-Im Bank’s reauthorization with the House following up, said a Schock staffer, who looks for the bank to survive the congressional fire. “No one thinks we’re staring down the barrel of a gun here. We’ve got until the end of September to get something worked out,” he said.

Steve Tarter is Journal Star business editor. Tarter’s phone number is 686-3260, and his email address is starter@pjstar.com. Follow his blog, Minding Business, on pjstar.com and follow him on Twitter @SteveTarter

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